Okay, I've gotten it fully working. You have to import the books individually, but it still works. What I did:
Convert whatever format you have (mobi, lit, etc.) to PDF - THIS IS ESSENTIAL! Using calibre
Now use the previously mentioned in this thread pdf to epub converter
Put it on your local network somewhere or a server of some type (I used my own website)
Point the reader DIRECTLY AT THE FILE INCLUDING THE EXTENSION!
It should take a while, but it'll work. I keep mine awake while importing as a precaution. Enjoy!